Fetner, MCB Real Estate, Farallon Capital Buy 240 Willoughby Street for $210M

A joint venture involving Fetner Properties, MCB Real Estate and Farallon Capital Management has acquired a newly renovated apartment building in Fort Greene, Brooklyn, for $209.5 million, Commercial Observer has learned.

The JV purchased and took over the ground lease of 240 Willoughby Street, a 30-story residential building featuring 463 units, 147 of which are designated affordable, according to a Thursday announcement. The deal was financed through a $141.5 million senior loan provided by M&T Realty Capital Corporation.

“We’re proud to play a role in bringing high-quality housing to the Fort Greene community and to support a premier sponsorship group in Fetner, Farallon and MCB,” Steve McGuire, head of multifamily bridge lending at M&T, said in a statement to CO.

The firms bought the property from Rabsky Group, which acquired the building in 2019 for $95 million and secured $140 million of construction financing for the multifamily high-rise complex in March, as CO previously reported.

Fetner, MCB and Farallon bought the project at renovation construction completion and prior to lease-up, with the building now standing at 25 percent leased, the announcement said.

“This rapid lease-up shows how much the neighborhood has embraced 240 Willoughby,” Fetner President and CEO Hal Fetner said in a statement. “We’re very bullish on New York City, and this acquisition is another step in our continued commitment to provide quality affordable and market-rate housing to the city.”

JLL’s Jeffrey Julien, Rob Hinckley and Steven Rutman arranged the sale, while Christopher Peck and Peter Rotchford, also from JLL, negotiated the financing for the JV.

“240 Willoughby is an extraordinary trophy asset directly abutting Fort Greene Park — a benefit that is extremely rare in New York City,” Julien said in a statement to CO. “The property offers sophisticated residential units with high-end finishes, spectacular views and ample outdoor spaces and balconies.”

Spokespeople for Farallon and M&T did not immediately respond to requests for comment, while a spokesperson for Rabsky could not be reached for comment.

It’s unclear why Rabsky offloaded 240 Willoughby after years of construction and renovations, but the developer is certainly busy elsewhere in the city. In February, Rabsky bought a vacant Tribeca lot at 360 Broadway for $57.6 million, and in April it secured a $555 million loan in April for its planned multifamily tower in Downtown Brooklyn at 625 Fulton Street.

240 Willoughby, which is situated on the corner of Willoughby Street and Ashland Place, features more than 30,000 square feet of amenities, including private terraces, a business lounge, a yoga studio, a fitness center, a bike room, a pet spa, game rooms and on-site parking, according to the announcement.

“We jumped at the opportunity to acquire this one-of-a-kind, premier asset,” P. David Bramble, managing partner at MCB, said in a statement. “It is a true standout among competitive projects, located in one of Brooklyn’s high-growth submarkets and uniquely positioned to meet the evolving needs of today’s renters.

“Partnering with Farallon and Fetner brings together a powerhouse team with the insight, experience and executional strength to unlock long-term value in one of the most competitive real estate markets in the country,” Bramble added.

News of the deal comes during a busy period for the joint venture.

Last July, Fetner bought The Rose Modern — an 82-unit luxury apartment building on the Upper East Side — from Empire Management for $63 million, while MCB paid $64.7 million for a 273,000-square-foot retail property in Southern California’s Inland Empire in September.

Meanwhile, Farallon just acquired a trophy office building at 1625 Eye Street in Washington, D.C., in a joint venture with GreenBarn Investment Group and FarmView Ventures through a $60.5 million credit bid this month, CO reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.